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If your wages are garnished, there's a limit to how much of your wages a creditor can take. Usually, that limit is 30% of your net income. However, if the creditor is claiming spousal or child support payments, they can take up to 50%. A garnishing order applies only to wages payable within the next seven days.
These include: Employment Insurance payments, Old Age Security benefits, Pension benefits, and any disability benefits issued by the Workplace Safety and Insurance Board or Ontario's Disability Support Program. These cannot be garnished even after they have been deposited into a bank account.
Ordinary garnishments Under Title III, the amount that an employer may garnish from an employee in any workweek or pay period is the lesser of: 25% of disposable earnings -or- The amount by which disposable earnings are 30 times greater than the federal minimum wage.
CRA has the right to garnish up to 50% of a debtor's wages if the debtor is employed and up to 100% of the debtor's income if the debtor is a contract worker. Self-employed debtors who bill their clients directly can have 100% of their income directed to the CRA in order to pay off their outstanding tax debts.
Garnishment exemptions These include: Employment Insurance payments, Old Age Security benefits, Pension benefits, and any disability benefits issued by the Workplace Safety and Insurance Board or Ontario's Disability Support Program. These cannot be garnished even after they have been deposited into a bank account.